The United States has opened a formal investigation into Brazil’s trade practices, intensifying President Donald Trump’s standoff with the South American nation over tariffs, censorship, and the prosecution of former Brazilian President Jair Bolsonaro.
The investigation, announced by the Office of the United States Trade Representative (USTR), will assess whether Brazil’s actions regarding digital trade, electronic payments, preferential tariffs, ethanol access, deforestation, and intellectual property are “unreasonable or discriminatory” and restrict US commerce.
The probe was launched under Section 301 of the Trade Act of 1974, which allows the US to address unfair foreign trade practices.
USTR Ambassador Jamieson Greer said the investigation was initiated at Trump’s direction to counter “Brazil’s attacks on American social media companies” and other policies harming US firms, workers, and innovators.
The move follows a sharply worded letter from Trump to Brazilian President Luiz Inácio Lula da Silva, accusing him of conducting a political “witch hunt” against Bolsonaro, who is facing trial for allegedly attempting to overturn the 2022 election.
The USTR expressed concern that Brazil is pressuring American tech companies to censor political speech and imposing higher tariffs on US ethanol while offering trade advantages to other nations.
Despite the accusations, the US has run a consistent trade surplus with Brazil, $6.8 billion in 2023, making the probe an unusual case among Trump’s trade offensives.
Trump has also threatened a 50% tariff on Brazilian imports and a 10% levy on all BRICS nations, citing threats to the US dollar’s global dominance.
Lula responded by promising to fight the tariffs, including filing a complaint with the World Trade Organization and seeking support from BRICS partners.
“The United States does not have a trade deficit with Brazil,” Lula said Friday. “We should be the ones imposing tariffs.”